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In this paper, we present the different cost sharing methods one can find in the economic literature. We regroup the methods into three sets : the proportional methods, the cooperative game theory methods and the serial cost sharing methods. All those methods are presented through the stylized...
Persistent link: https://www.econbiz.de/10005079410
It is important that the choice of a cost sharing method be made on the basis of its general equity and consistency properties rather than on the basis of the results it may generate in a given application. In this paper, we partition the different methods according to whether they satisfy a...
Persistent link: https://www.econbiz.de/10005079438
In this document, we present the notion of a cost game, defined as a cooperative game where the gain from cooperation is the cost reduction obtained when the projects of a set of agents are realized in a coordinated way. The problem is then to decide how this gain will be shared among agents or...
Persistent link: https://www.econbiz.de/10005100476
In this paper, we present the main solution concepts for cooperative games, which have been used in the context of cost games. We put a special emphasis on the concept of core. We also present the concepts of semicore, von Neumann-Morgenstern stable set, nucleolus and Shapley value. However, we...
Persistent link: https://www.econbiz.de/10005100477